Pricing Power framework surfaced
Social threads recommend a 'Pricing Power System' that identifies outcome-based value gaps, uses high anchors, and rates confidence in market fit before raising prices. An example cited a high-end construction firm with $1.1M annual cash flow selling at a 5.45x multiple to illustrate the value of established, predictable revenue. (x.com/BobbyBizScout/status/2044068335684596174)
A social-media thread by Bobby Graham (X handle @BobbyBizScout) surfaced a "Pricing Power System" that prescribes outcome-based value gaps, high anchors, and confidence scoring before price increases. (x.com) Graham, who posts business listings and deal notes regularly, outlined the system in a multi-post thread on X this week. (piclur.com) The thread breaks the method into three steps: identify outcome-based value gaps, present high anchor prices, and rate confidence in market fit before raising prices. (x.com) Graham illustrated the approach with a listed high-end construction firm showing $1.1 million in annual cash flow and a recent sale at a 5.45x multiple to underline predictable-revenue value. (x.com) Consulting firms and pricing researchers say outcome-based models and clear pricing metrics are rising; LEK published a major write-up on outcome-based pricing on September 13, 2024, and Deloitte has urged firms to align pay with measurable business outcomes. (lek.com) Bloomberg’s Pricing Power Index measures companies by five-year margin stability, showing investors already prize steady, raiseable pricing as a valuation factor. (bloomberg.com) Behavioral research going back to Amos Tversky and Daniel Kahneman’s 1974 work documents the anchoring effect; pricing consultancies such as Simon-Kucher advise using higher anchors to shift customer reference points. (bear.warrington.ufl.edu) Practical rollout requires operational work: Pragmatic Institute and Deloitte note outcome-based pricing needs data pipelines, measurable KPIs, legal terms, and pilot customers before broad implementation. (pragmaticinstitute.com) Graham’s final post urges teams to “rate confidence” in product-market fit before any price move, a procedural step he frames as the gatekeeper for safer price increases. (x.com)